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Saturation Encourages Emergence of New Services and Technologies in the Latin American Mobile Services Markets Finds Frost & Sullivan - Saturation in the Latin American mobile services markets has encouraged participants in some regions to seek alternative sources of revenue
Saturation Encourages Emergence of New Services and Technologies in the Latin American Mobile Services Markets Finds Frost & Sullivan

 

NewswireToday - /newswire/ - Buenos Aires, Argentina, 2009/09/09 - Saturation in the Latin American mobile services markets has encouraged participants in some regions to seek alternative sources of revenue.

   
 
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Some countries in the region have already exceeded 100 percent mobile penetration in terms of the number of lines. Understanding customer needs and developing innovative, converged services is crucial to take the market to the next level. The main markets in the region already provide 3G services, and operators are focusing their investments in service offerings.

New analyses from Frost & Sullivan (wireless.frost.com), Latin American Mobile Services Markets - Outlook I and II, find that the market earned revenues of over $68,026 million in 2008 and estimates this to reach $103,235 million in 2014. The studies cover mobile telephony, mobile data services, and mobile broadband services in Brazil, Colombia, Mexico, Argentina, Venezuela, and Chile.

If you are interested in a virtual brochures, which provides a brief synopsis of the research and a table of contents, then send an email to Catalina Rossini, Corporate Communications, at catalina.rossini[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, the brochures will be sent to you by email.

"Advanced mobile applications are likely to increase data traffic and thus carrier revenues," says Frost & Sullivan Research Analyst Bruno Neto. "Investments in 3G, long term evolution (LTE) network expansion, and smartphones with lower prices and attractive models are expected to propel the market. Fixed mobile migration and service convergence will also enhance market prospects."

However, regulatory issues have remained a barrier for mobile market development in the whole region as each country has different rules for the telecommunication market. Latin American governments have delayed important measures that have the potential to speed up telecommunications development processes. For instance, number portability, which will serve to ignite competition among local operators and attract new entrants with innovative products and services that offer higher quality, has been implemented in only two regions until now.

Considering that most countries in Latin America have reached market maturation, the region requires a more coordinated solution for mobile market issues. Otherwise, these differences can delay investments of new entrants in the whole region.

"The competitive scenario is likely to intensify further under the shadow of the economic meltdown," adds Neto. "Companies will be putting investments on hold and carriers will have to explore new avenues for business progression."

Growth in Argentina is likely to slow down to 2.6 percent in 2009. However, these figures indicate that Argentina will be among countries that will feel the impact of the recession the least. Notwithstanding the complicated economic scenario, mobile data services will grow and provide increased momentum for the market. Low priced data services are expected to grow faster during the short term because the international crisis has stimulated the growth of less expensive services.

Brazil too is poised to witness considerable growth in information transmission volume, propelled by strong competition in the local market with four national coverage incumbents offering 3G services. Carriers engaged in expediting data traffic have established partnerships with vendors to roll out new services which encourage greater utilization of data services.

"While the overall Latin America mobile penetration stood at 84.3 percent across the six countries analyzed, in Argentina it was 108.9 percent while Mexico achieved 73.4 percent penetration," notes Neto. "This shows the different path of development and opportunities for new participants willing to enter in Latin America."

In the medium and long term, data services will witness robust growth in all the Latin American countries. Mobile applications such as e-mail, global positioning system (GPS), banking, and mobile television will keep market prospects upbeat.

Latin American Mobile Services Markets - Outlook I and II, is part of the Mobile and Wireless Communications Growth Partnership Service program, which also includes research in the following markets: Latin American Broadband Services Markets, Latin American Datacommunications Services Markets, and Latin American Pay TV Services Markets. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.

Latin American Mobile Services Markets - Outlook I and II / N601 and N602

 
 
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Written by / Agency / Source: Frost & Sullivan

 
 

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Saturation Encourages Emergence of New Services and Technologies in the Latin American Mobile Services Markets Finds Frost & Sullivan

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Frost & Sullivan |
Publisher Contact: Catalina Rossini 
+54-11-4777-4777 catalina.rossini[.]frost.com
 
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